This newsletter looks at the issues paper recently released by the Reserve Bank in regard to their review of the Insurance (Prudential Supervision) Act 2010. We discuss the key issues for non-life insurers, perhaps the most important of which is maintaining a level playing field between New Zealand and foreign insurers.

In this paper, we examine different distribution mechanisms in use around New Zealand by community trusts, iwi, and other similar organisations. We analyse how three simple distribution rules would fare following a large negative investment shock. The results show that there are clear differences and that the choice of distribution method has significant implications for intergenerational equity.

MJW has compiled a library of all the financial statements for every insurer licensed to operate in New Zealand as discussed in the attached newsletter. We’ve also done an analysis of TOWER’s accounts given the recent purchase offer by Fairfax.

Disruptive technologies threaten to shake up the insurance industry, and some commentators would have you believe that these are just around the corner. This article looks at some of the factors that need to be present for such technologies to succeed and considers the implications for New Zealand insurers.

The Residual Claims Levy (RCL) ceases with effect from 1 April 2016 and the impact is to transform the financial attraction of the Accredited Employers Programme (AEP). This newsletter focuses on illustrating the financial options for employers. Now is the time for all large and medium sized employers to compare their ACC options for the 2017 cover year.

In this newsletter, we look back over 20 years at the returns from each of the major asset classes. We then look at 3 hypothetical diversified portfolios and compare/contrast the returns experienced by each.

This newsletter highlights the need for legislative action to cease collection of the Residual Claims Levy. Currently the accredited employers are being hit hard and are ending up subsidising standard employers. All of this is acting as a disincentive to employers at a time when further incentives to improve health and safety in the NZ workplace are needed.

While most of the current commentary on markets is looking forward to 2015, this article looks back at the key trends in 2014 and is entitled “Six trends that shaped markets in 2014”. A recap on how we have got to where we are is seen as valuable

Come December 2016, corporate super schemes need to comply fully with the Financial Markets Conduct Act requirements. Before embarking on any changes, schemes need to fully review all their options. The newsletter addresses these options.

This article gives Towers Watson’s most recent global economic outlook. In summary, their view is that global growth is expected to be modest but acceptable over the next 3-5 years, although divergent across countries. Risks are believed to be skewed to the downside over the medium to long term.

With an election this year, the ACC levy setting process has happened earlier than usual. Last week, the minister announced the final rates for the 2015/16 year, and we have outlined these in the attached newsletter. Interestingly, the minister also indicated that a sufficient amount of residual levy has now been collected to cover the cost of pre-1999 injuries. As a result, a review into the residual levy is expected in the future, which will be of interest to Accredited Employers.

How well are the results from the actuarial valuation understood by employers, and how useful are the results to the employer in managing their health and safety risk? In this publication we explore this issue, plus the idea that some smaller employers could reasonably the ACCPP option.

To celebrate the launch of our data analytics practice we have put together some quick statistics on the election results. Whilst the overall results are well known and publicised, some interesting observations arise when combined with last year’s census data.

While the last 15 years have been a tough time for investors in share markets it has been a boom time for holders of bonds. But given the current uncertainty in the markets, where do we go from here? What do charitable trusts do to meet their distribution expectations? The answers are not obvious but a review of the recent past is often a useful starting point.

Our assessment is that the proposals look well designed and workable. The Accredited Employers will want to assess the costs before confirming they will renew their membership of the ACCPP for the 2011/12 year.

The standard levy for the Work Account is up 57% and the Residual Claims Account up 27%. However with the planned change in the funding date for the pre 1999 claims from 2014 to 2019 the Residual Claims Account levy will decrease by 50% which is good news for the ACCPP employers.

While the Work Account and Residual Claims Account levies in total remain unchanged for 2009/10 our analysis shows that ACC has significant claim cost pressures which will need addressing if the levies for the Work, Earners and Motor Vehicle Accounts are not to increase substantially over the next few years.

There is increasing interest in the possibility that a National Government will re privatise some of the ACC accounts. This paper looks at the experience in 1999/2000 when the Employer Account was privatised.

For reporting periods commencing 1 January 2007, all reporting entities in New Zealand must comply with the New Zealand International Financial Reporting Standards (NZ IFRS). Early adoption of the NZ IFRS is permitted from 1 January 2005. Risk margins are a requirement.

This newsletter looks at the issues paper recently released by the Reserve Bank in regard to their review of the Insurance (Prudential Supervision) Act 2010. We discuss the key issues for non-life insurers, perhaps the most important of which is mainta …

In this paper, we examine different distribution mechanisms in use around New Zealand by community trusts, iwi, and other similar organisations. We analyse how three simple distribution rules would fare following a large negative investment shock. The …